XRP Faces Potential Breakdown as Head and Shoulders Pattern Emerges

Legendary chart analyst Peter Brandt has raised concerns about a possible bearish setup forming on XRP's weekly chart. Brandt points to a potential head and shoulders (H&S) top, a classic reversal pattern that could spell trouble for the altcoin’s recent bullish momentum. He notes that if traders disregard the sharp price spike observed on April 7 as an outlier, the pattern appears to fit the textbook structure of a market top.

Currently, XRP is hovering near the $1.99 mark, which aligns with the neckline support of the possible H&S formation. According to Brandt, the critical level to watch is $1.87. A weekly close below this threshold could confirm the pattern and signal a major technical breakdown. Such a move might indicate that XRP’s late-2024 rally has already topped out, potentially leading to further downside pressure in the market.

Despite these concerns, XRP is showing short-term strength. At press time, the token is trading at $2.18, marking an 8.5% gain over the past 24 hours, based on CoinMarketCap data. Still, Brandt remains cautious, stating he will only reconsider his bearish outlook if XRP decisively breaks back above the neckline and invalidates the pattern.

With XRP now consolidating in a tight range just below $2.00, traders and investors are closely watching price action for confirmation. The next few days could prove pivotal in determining whether the current structure results in a deeper correction or a renewed upward trend. As the crypto market remains volatile, technical levels like $1.87 may play a crucial role in shaping XRP’s short- to mid-term direction.